An amended Senate bill proposes to cap the tax rebates for economically at-risk oil wells at $12.5 million a year.The House passed Senate Bill 1577 on Thursday night that would require oil producers to give up more than $120 million worth of tax rebates that would go toward the general fund.“It’s really disappointing. What it did was it just continued to put more wells at risk,” said James Roller, vice president of legislative affairs for the Oklahoma Independent Petroleum Association.The OIPA compromised with legislators on a $25 million cap, but in the end lawmakers cut that in half.Roller said at a time when commodity prices are down, oil producers need those rebates to keep their at-risk wells going.“We wish the cap would have been higher. There’s some real possibility that we will lose some revenue due to wells being shut down,” Roller said.Roller said there are 80,000 at-risk wells in our state and that the association isn’t sure if $12.5 million will be enough to save all of them.As a result, some have to be shut down and companies could face more layoffs in the future as a result.Roller said the oil producers want to reiterate that they are grateful that they’re still able to get some sort of tax rebate.Senate Bill 1577 is now headed back to the Senate for approval of the amended version of the bill.

OKLAHOMA CITY —

An amended Senate bill proposes to cap the tax rebates for economically at-risk oil wells at $12.5 million a year.

The House passed Senate Bill 1577 on Thursday night that would require oil producers to give up more than $120 million worth of tax rebates that would go toward the general fund.

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“It’s really disappointing. What it did was it just continued to put more wells at risk,” said James Roller, vice president of legislative affairs for the Oklahoma Independent Petroleum Association.

The OIPA compromised with legislators on a $25 million cap, but in the end lawmakers cut that in half.

Roller said at a time when commodity prices are down, oil producers need those rebates to keep their at-risk wells going.

“We wish the cap would have been higher. There’s some real possibility that we will lose some revenue due to wells being shut down,” Roller said.

Roller said there are 80,000 at-risk wells in our state and that the association isn’t sure if $12.5 million will be enough to save all of them.

As a result, some have to be shut down and companies could face more layoffs in the future as a result.

Roller said the oil producers want to reiterate that they are grateful that they’re still able to get some sort of tax rebate.

Senate Bill 1577 is now headed back to the Senate for approval of the amended version of the bill.